Step-by-Step Guide

The U.S. Agency for International Development (USAID) is undertaking a major cultural and operational transformation to expand its engagement with the private sector to achieve outcomes of shared interest and shared value. USAID’s Private-Sector Engagement Policy signals an intentional shift to pursue market-based approaches and investment as means to accelerate countries’ progress on the Journey to Self-Reliance.

As USAID and the broader development community seeks to increase accountability and evidence-based development, foster innovation, and maximize development dollars, new approaches are emerging to demonstrate measurable results from U.S. assistance programs and initiatives.

The Pay-for-Results (PFR) is an approach to development in which USAID makes payments when implementers achieve milestones or development results. By bringing together all stakeholders together from the beginning of the development activity to set performance metrics, this innovative approach seeks to ensure that funds allocated for U.S. development and humanitarian efforts achieve measurable results as cost effectively as possible.